The February issue of the IAIS newsletter highlights that the global insurance sector plays a cornerstone role in the management of climate-related risks and opportunities for individuals, households, firms, other financial institutions, and public authorities. There is an increasing consensus across the financial sector that the potential systemic impact of climate change requires a similarly systemic global response, exemplified by work at the international level by the G20 and FSB. A growing number of insurance supervisors are examining the relevance of climate risks for insurance supervision, both individually and collaboratively through the Sustainable Insurance Forum (SIF).
The newsletter notes that IAIS is collaborating with SIF to develop an issues paper on climate-related financial disclosures for the insurance sector. This topic aims to open the dialog between insurance regulators, regulated firms, and other stakeholders around awareness of climate-related disclosures, use of scenarios and metric,s and support of the development of best practices to be considered by insurers in their financial disclosures. The newsletter further highlights that IAIS hosted an Insurance Capital Standard (ICS) stakeholder event on February 01, which gave members and stakeholders another opportunity to provide feedback on the ICS prior to the finalization of ICS Version 2.0 for the monitoring period.
Additional key updates for this month are as follows:
- The Capital, Solvency and Field Testing Working Group (CSFWG) met in Basel from January 28-31 to finalize its recommendations on 2019 Field Testing of ICS Version 2.0. These recommendations will go to the Policy Development Committee and the Executive Committee for endorsement at their meetings in late February.
- At its meeting on February 5-6, the Governance Working Group discussed the 2018 public consultation comments on ComFrame material in Insurance Core Principle (ICP) 5 on suitability of persons, ICP 7 on corporate governance, and ICP 8 on risk management.
- At its meeting on February 13-14, the Working Group discussed 2018 public consultation comments on ComFrame material in ICP 9 on supervisory review and reporting; ICP 10 on preventive measures, corrective measures, and sanctions; ICP 23 on group-wide supervision; and ICP 25 on supervisory cooperation and coordination.
- The Resolution Working Group met on January 23-24, with key items on agenda including a discussion of outcomes of the July 2018 draft ComFrame consultation and the November 2018 consultation on a draft application paper on recovery planning.
- The Supervisory Material Review Task Force met on February 7-8 and discussed the resolution of comments from the consultation on the draft introduction to ICPs and ComFrame.
Keywords: International, Insurance, Newsletter, Comframe, ICP, Climate Related Risks, IAIS
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FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.
FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.
EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.
ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.